The fourth-largest economy in the world after the United States, China and Germany, Japan offers companies eyeing expansion an exciting opportunity to grow their business in a truly unique market.

A solid population of middle-class consumers with high disposable incomes and a keen interest in new technologies, makes Japan ideal for international businesses that offer premium goods, services or innovative digital solutions.

If you own a small company, Japan offers a stable business environment with fantastic infrastructure and a welcoming consumer base. British businesses, especially in manufacturing, consumer goods, high-tech products and services, will find Japan an excellent market to explore. Plus, Japan offers a very open economy and ranks highly for ease of doing business.

As with any new market, there’s a unique set of challenges when it comes to Japanese business dealings. It’s important to do thorough research and gather all the facts before you start exporting your products or services. To get you started, here are a few things to know before you start moving your business to Japan.

Depending on your resources, you may decide to enter the market by setting up a physical business in the region or starting small by exporting your products on a few Japanese marketplaces to gauge interest, such as Amazon Japan and Rakuten.

You could also decide to go at it alone or find a local partner to help with distribution and building connections. Either way, your route to market needs to work for your business in the long term – Japan is a market that favours businesses willing to commit.

The Department for International Trade has a number of useful guides and advice for different routes to market and what to bear in mind for each.

The business culture in Japan places significant emphasis on relationships, so if you’re looking to do business in the region, it’s vital you begin to build a strong network of personal contacts.

Whether you’re planning to open a physical office or just sell through an online marketplace, it’s recommended you build local contacts. They can help you understand the business culture and serve as valuable connections for developing business relationships with potential customers, suppliers and partners.

It will come as no surprise that the Japanese business culture places high value on etiquette, respect and cultural sensitivity. So, before you expand your business to Japan, it’s important to learn about local customs and keep in mind values to help you deal with various situations.

Most Japanese businesses and customers won’t expect foreign businesses to immediately uphold and understand traditions, but showing some deference to their culture will go a long way in making your business a success. For example, British businesses are encouraged to get two-sided business cards with one side translated into Japanese – and they should be presented by holding the two corners closest to you with both hands.

Japan places emphasis on strong intellectual property protection and follows a ‘first-to file’ system. Therefore, if your brand, logo, product or service has a distinct characteristic you’re looking to capitalise on, it’s important you secure the correct trademark and patent protection.

Having the right protection could also open up opportunities for your business in terms of brand licensing or collaborating with other Japanese businesses. UK companies with an intention of starting their business in Japan should look to register their trademarks with the Japan Patent Office and can do so even without an office address.

Once your business is up and running in Japan, you’ll want to withdraw your earnings from sales and services. This previously involved setting up a Japanese bank account (which requires a Japanese address). But now there’s a range of options for you to access your hard-earned income with less hassle.

The World Account makes it easy for businesses selling to Japanese consumers via online marketplaces to receive their payments in Japanese yen and withdraw them home.  No need to open a local bank account or register an overseas address in Japan. You’ll benefit from our fast, efficient and cost-effective service when doing business, allowing you to focus on other important things – like growing your business.

To find out how to take advantage of WorldFirst’s services, get in touch with us to find out how we can help.